What Everyone Wants to Know: Will Home Prices Decline in 2022?

If you’re thinking of buying a home in today’s housing market, you may be wondering how strong your investment will be. You might be asking yourself: if I buy a home now, will it lose value? Or will it continue to appreciate going forward? The good news is, according to experts, home prices are not projected to decline. Here’s why.

With buyers still outweighing sellers, home prices are forecast to continue climbing in 2022, just at a slower or more moderate pace. Why the continued increase? It’s the simple law of supply and demand. When there are fewer items on the market than there are buyers, the competition for that item makes prices naturally rise.

And while the number of homes for sale today is expected to improve with more sellers getting ready to list their houses this spring, we’re certainly not out of the inventory woods yet. Thus, the projections show continued appreciation, but at a more moderate rate than what we’ve seen over the past year.

Here’s a look at the latest 2022 expert forecasts on home price appreciation:

What’s the biggest takeaway from this graph? None of the major experts are projecting depreciation in 2022. They’re all showing an increase in home prices this year.

And here’s what some of the industry’s experts say about how that will play out in the housing market this year:

Brad Hunter of Hunter Housing Economics explains:

“. . . the recent unsustainable rate of home price appreciation will slow sharply. . . . home prices will not decline. . . but they will simply rise at a more sustainable pace.”

Danielle Hale from realtor.com agrees:

“Price growth is expected to move back toward a normal range, but this is on top of recent high prices, . . . So prices will [still] hit new highs. . . . The pace of price growth is going to slow notably . . . ”

What Does This Mean for the Housing Market?

While home price appreciation is expected to continue, it isn’t projected to be the record-breaking 18 to almost 20% increase the market saw over the past 12 months. Overall, it’s important to note that price increases won’t be as monumental as they were in 2021 – but they certainly won’t decline anytime soon.

What Does That Mean for You?

With motivated buyers in the market and so few homes available to purchase, the imbalance of supply and demand will continue to put upward pressure on home prices in 2022. And when home price appreciation is in the forecast, that’s a clear indication your investment in homeownership is a sound one.

Bottom Line

It’s important to know that home prices are not projected to decline in the new year. Instead, they’re forecast to rise, just at a more moderate pace.  Exploring Dunwoody homes for sale on our site will give you an idea of today’s market prices. Let’s connect to make sure you’re up to date on what’s happening with home price appreciation in our market, so you can make an informed decision about your next move.

How to Incorporate 2022’s Color of the Year into Your Home Decor

Every year Pantone chooses a color that reflects the current trends and happenings of the world. Color experts research new color influences within the entertainment industry, art and fashion collections, all areas of design, popular travel destinations, new lifestyles, as well was socio-economic conditions. For 23 years, Pantone’s Color of the Year has influenced product development and purchasing decisions in the fashion, home furnishing, industrial and graphic design industries.

For the first time ever, Pantone’s Color of the Year was created as opposed to being chosen from their arsenal of colors.

“As we move into a world of unprecedented change, the selection of PANTONE 17-3938 Very Peri brings a novel perspective and vision of the trusted and beloved blue color family, encompassing the qualities of the blues, yet at the same time with its violet red undertone, Very Peri displays a spritely, joyous attitude and dynamic presence that encourages courageous creativity and imaginative expressions,” said Leatrice Eiseman, Executive Director of the Pantone Color Institute.

A representation of the possibilities that digital design has brought to the realm of color, Very Peri is the fusion between the modern world and how color trends in the digital world are being manifested in the physical world. So how do you manifest 2022’s Color of the Year into your home décor? We’ve compiled several accent decorations to help you stay ahead of the trend that Very Peri is sure to bring.

Wall Decor

 

Tired of looking at a plain wall or need something new to shake things up? Try these handmaid prints made by an Etsy artist. Perfect for adding some color to your dining room or as a starting piece for a collage wall in the hallway.

Area Rug

Adding an area rug is a sure-fire way to really transform the feel of a room. Have a sitting area that lacks excitement? This Emelia Area Rug in Lavender, Dark Blue is not only reminiscent of the Color of the Year, but can help to anchor a room, define it, add warmth, and help layer a room’s décor.

Table Lamp

The best way to complement the décor in the rest of a room is to add a lamp. Think of a lamp like the jewelry of the room. This Mura Blue Glass Table Lamp is the perfect combination of contemporary art meets classic design. The indulgent shaping and tones make this the perfect accent for soft lighting.

Throw Pillows

 

Throw pillows are the key to turning a house into a home. From living room seating, hallway benches, and pretty much anything in the bedroom, adding a throw pillow will bring out the subtle design features in a space. Want to bring out the blue or red hues in your space, without overdoing it? Try these Indigo Distressed Persian Rug Print Throw Pillows to lend vintage allure to any couch corner.

Coffee Mug

Want to incorporate Very Peri into your everyday life? Then you need these Le Creuset Coffee Mug Set to really tie in the Color of the Year into your life.

Top 10 Home Design Trends to Take into 2022

The pandemic has changed the way many of us think about our home spaces. Between Tiktok and Instagram, the stream of ideas and inspiration is endless. From trendy plants to new kitchen cabinets, many of us have replaced small items or renovated entire rooms from floor to ceiling. With the year ending, it’s no wonder we want to revisit some of the best home décor trends of 2021:

Detail in the ceilings

The ceiling or the “fifth wall” became the show stealer this year.  Many opted for neutral-colored walls and a characterized ceiling. If you’re looking to update your master bedroom or living area, try adding wood detailing or beams.

Home offices were light and neutral

A lot more people are working from home these days and we can officially say that calming colors, smooth textures and bright lighting were the necessary component this year for offices.

Thank Tiktok for the “cottagecore” trend

What the internet has named “cottagecore”, is the accumulation of warm colors, soft textures and lived-in pieces like repurposed coffee tables and bookcases. If you’re looking to bring some cottagecore to your home, try incorporating floral printed pillows and repurposed furniture.

Vintage furniture is here to stay

If you’re looking for a unique twist to your home there’s no better place to look than your local flea markets. Last year, Chairish – a vintage retailer – had a 60% increase in sales, and Statista reported that the “furniture resale market” will most likely see an increase of 70% by the year 2025. Vintage isn’t going anywhere any time soon, so next time you want to add some bookends or a new armchair for the living room, try opting for a vintage piece.

Maximalist is the new minimalism

“Maximalist design is all about expressing your individuality and unique perspective. Maximalists don’t care what the ‘Joneses will think; they design for their own joy,” said award winning designer, Courtney McLeod. If you have an eye for unique design, try incorporating a colorful couch, bold lamps and fun lighting to bring a little maximalist to your life and into your home.

Bringing the outdoors inside

The old farmhouse style of plants that have taken over our houses for the last decade are slowly going out of fashion. Instead, they are being replaced with a “less is more” approach that balances between trendy and functional. If you’re looking to up your plant game, try incorporating potting options that are sculptural and have a design life of their own.

Shaker cabinets have been all the rage

If you still have the early 2000s, cherry or walnut cabinets that you are desperate to get rid of, look no further than shaker cabinets. Shaker cabinets are narrower than your typical kitchen option and feature more streamlined edges. It’s a classic style that isn’t going anywhere soon, so you can invest your money without feeling wasteful.

Modern country design has been the best of both worlds

This is for the homeowners that can’t decide what home décor is for you. The combination of modern and southern lifestyle has taken on a life of its own. It’s an idyllic classic that meshes warm, homey vibes with neutral tones and simple lines.

Bringing vacation home

There’s nothing worse than walking into a friend’s bathroom and seeing truly awful stylings of anchors, starfish and seashell-shaped towel hooks. When we say coastal décor trend, we are thinking more on the side of open and airy décor that invokes the feeling of sitting near the seaside.

Open shelving provided a fresh kitchen style

Raise your hand if you have loathed putting away the dishes simply because of the opening and closing of the cabinets. Turns out there’s a solution that just so happens to be a trending décor option. Open shelving in the kitchen has been noted by HGTV as a trend that “doesn’t seem to be showing any signs of slowing down.” If you aren’t sold on the idea, HGTV suggests taking the doors off your cabinets to “ease” into it.

 

Source: TheList.com

What the New Year Will Bring for the Real Estate Market

Why It Just Became Much Easier To Buy a Home

Since the pandemic began, Americans have reevaluated the meaning of the word home. That’s led some renters to realize the many benefits of homeownership, including the feelings of security and stability and the financial benefits that come with rising home equity. At the same time, many current homeowners have decided their house no longer meets their needs, so they moved into homes with more space inside and out, including a home office for remote work.

However, not every purchaser has been able to fulfill their desire for a new home. Here are two obstacles some homebuyers are facing:

  • The ability to save for a down payment
  • The ability to qualify for a mortgage at the current lending standards

This past week, both of those challenges have been mitigated to some degree for many purchasers. The FHFA (which handles mortgages by Freddie Mac, Fannie Mae, and the Federal Housing Administration) is raising its loan limit for prospective purchasers in 2022. The term used to describe the maximum loan amount they will entertain is the Conforming Loan Limit.

What Is the Difference Between a Conforming Loan and a Non-Conforming Loan?

Investopedia explains the difference in a recent post:

“Conforming loans are the only loans that meet the requirements to be acquired by Fannie Mae and Freddie Mac. Jumbo loans, which exceed the conforming limit, are the most common type of nonconforming loan.”

What Difference Does It Make to Me as a Home Buyer?

A Forbes article earlier this year explains the benefits of a conforming loan and why they exist:

“Since lenders can’t sell non-conforming loans to Fannie Mae or Freddie Mac to free up their cash, they’re a bit riskier for the lender. This is especially true for jumbo loans, which aren’t backed by any government guarantees. If you default on a jumbo loan, it’s a huge blow to the lender.

Thus, lenders generally charge higher interest rates to compensate, and they can have even more requirements. For example, lenders who give out jumbo loans often require that you make a down payment of at least 20% and show that you have at least six months’ worth of cash in reserve, if not more.”

What Happened Last Week?

The FHFA has significantly increased its Conforming Loan Limits for 2022. Sandra L. Thompson, FHFA Acting Director, explains in the press release that:

“Compared to previous years, the 2022 Conforming Loan Limits represent a significant increase due to the historic house price appreciation over the last year. While 95 percent of U.S. countie​s will be subject to the new baseline limit of $647,200, approximately 100 counties will have conforming loan limits approaching $1 million.”

This means that more homes now qualify for a conforming loan with lower down payment requirements and easier lending standards – the two challenges holding many buyers back over the last year.

The Federal Housing Administration (FHA) also increased its Conforming Loan Limits for 2022. That could also mean an easier path to homeownership for many prospective buyers. As the Forbes article explains:

“FHA loans can be very beneficial if you don’t have as much savings, or if your credit score could use some work.”

Bottom Line

Buying your first or your next home may have just gotten much easier (less stringent qualifying standards) and less expensive (possibly lower mortgage rate). Let’s connect to discuss how these changes may impact you.

Resources:
  1. To get more information on the new FHFA Conforming Loan Limits, click here.
  2. To get more information on the new FHA Conforming Loan Limits, click here.

Explore current Dunwoody homes for sale, Sandy Springs home for sale, and Chamblee homes for sale.

Experts Project Mortgage Rates Will Continue to Rise in 2022

Mortgage rates are one of several factors that impact how much you can afford if you’re buying a home. When rates are low, they help you get more house for your money. Within the last year, mortgage rates have hit the lowest point ever recorded, and they’ve hovered in the historic-low territory. But even over the past few weeks, rates have started to rise. This past week, the average 30-year fixed rate was 3.09%.

What does this mean if you’re thinking about making a move? Waiting until next year will cost you more in the long run. Here’s a look at what several experts project for mortgage rates going into 2022.

Freddie Mac:

“The average 30-year fixed-rate mortgage (FRM) is expected to be 3.0 percent in 2021 and 3.5 percent in 2022.”

Doug Duncan, Senior VP & Chief Economist, Fannie Mae:

“Right now, we forecast mortgage rates to average 3.3 percent in 2022, which, though slightly higher than 2020 and 2021, by historical standards remains extremely low and supportive of mortgage demand and affordability.” 

First American:

“Consensus forecasts predict that mortgage rates will hit 3.2 percent by the end of the year, and 3.7 percent by the end of 2022.”

If rates rise even a half-point percentage over the next year, it will impact what you pay each month over the life of your loan – and that can really add up. So, the reality is, as prices and mortgage rates rise, it will cost more to purchase a home.

As you can see from the quotes above, industry experts project rates will rise in the months ahead. Here’s a table that compares other expert views and gives an average of those projections:Experts Project Mortgage Rates Will Continue To Rise in 2022 | MyKCM Whether you’re thinking about buying your first home, moving up to your dream home, or downsizing because your needs have changed, purchasing before mortgage rates rise even higher will help you take advantage of today’s homebuying affordability. That could be just the game-changer you need to achieve your homeownership goals.

Bottom Line

If you’re thinking of buying or selling over the next year, it may be wise to make your move sooner rather than later – before mortgage rates climb higher. Get started today by checking out our Dunwoody homes for sale, Sandy Springs home for sale, and Chamblee homes for sale!

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